ANZ Group announced on Monday that its revenue for the first quarter matched the average quarterly revenue of the first half of fiscal year 2023, thanks primarily to the strong performance of its institutional division’s markets business. This news sent the shares of the Melbourne-based bank to their highest point in nearly 22 months.
ANZ Bank’s Shares Rise to a 22-Month High on Q1 In-Line Revenues
By 2320 GMT, the shares had climbed nearly 1% to A$27.93, reaching levels not seen since April 21, 2022, in contrast to a 0.3% decrease in the broader market index.
The bank’s institutional banking services have seen a surge in demand, leading to a record annual profit last year, boosted significantly by a payments platform known for handling large cross-border transactions. “The institutional division’s markets business had a positive start to the year, with revenues slightly exceeding the first-half FY23 average of A$575 million ($374.73 million),” ANZ Group stated.
Furthermore, the bank reported strong lending growth within its Australian retail and consumer franchises, driven by an increase in customer deposits, contributing to the profitability of its Australian home loan book. Despite an A$3 billion decrease in institutional deposits, ANZ Group’s retail and commercial divisions in Australia saw an increase of A$8 billion in customer deposits.
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For the first quarter, the bank’s revenue stayed consistent with the first half of the previous fiscal year’s quarterly average of A$5.26 billion, according to its limited quarterly update, which did not disclose profit figures.
Analysts from Citi commented, “1Q24 group revenue was consistent with the 1H23 quarterly average and, therefore, slightly better than anticipated,” viewing this as a neutral disclosure, especially considering the share price increase leading up to the announcement and the overall stable financial conditions.
However, the bank noted a slight decrease in its common equity tier 1 ratio, which dropped to 13.1% by the end of December 2023 from 13.3% at the end of September last year.
